Two dozen Finnish and Swedish industry giants are forming an AI alliance – ‘It’s a world-first’

SEB chairman and one of Sweden’s most powerful businessmen, Marcus Wallenberg, is worried that the Nordics are falling behind in digitalization.

Now, he's forming a tech alliance between 24 of the largest Swedish and Finnish companies. The purpose is to share knowledge and experiment on technologies like AI and IoT.

This sort of exchange among established global companies is a world-first, says the CEO of the company in charge of the of the collaboration: "Perhaps because cooperation is our forte in the Nordics"

Two dozen of the largest Swedish and Finnish companies are uniting for a knowledge exchange on new technologies like artificial intelligence, Dagens Industri reports.

Although it's often assumed that Nordic companies are at the cutting edge of digitization, Marcus Wallenberg, who chairs major industrial companies like SEB and Saab, begs to disagree.

“Personally, I am worried that we are not adapting to new technology fast enough”, says Marcus Wallenberg, who is the brother of Investor chairman Jacob Wallenberg.

Wallenberg argues Sweden’s and the Nordic region's resources are too limited to to handle the extensive changes many of the larger companies are facing.

A collaboration between Nordic industry giants - to boost tech and business model development

Atlas Copco press

In 2014, Wallenberg began to discuss the topic with Mats Agervi, who established parts of Ericson’s business in India. Agervi is now the CEO of Combient, a joint venture between 24 Swedish and Finnish member companies, most of them partly owned by Investor.

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The idea first got started when a dozen of these companies had spontaneously started sharing knowledge amongst each other.

“The rapid development within tech affects all companies we are involved in, and most industries. If you want to keep up with the competition in five years, you must understand and master new technologies, such as AI”, says Wallenberg.

Among the alliance's companies are Swedish and Finnish giants like Ericsson, Wärtsilä, SAAB, Kone and Atlas Copco.

The idea is for the companies to exchange valuable knowledge relating to digitalization – not only when it comes to technology but also the overall business transformation as well as recruiting, communication and company culture.

Member companies don't compete directly with each other, which boosts knowledge sharing

Ericsson headquarters in Kista, Stockholm.

Ericsson

“Our model is inspired by how you work in a digital world. It’s based on the sharing economy and we conduct development experiments with various types of disruptive technology such as AI, blockchain and Internet of Things,” says Agervi.

Wallenberg and Agervi argue there are a lot of challenges ahead for Nordic companies. “Sharing information and experiences is one thing, but company leaders must change entire businesses. And that effects all employees”, says Wallenberg.

Even though the Nordics have a world-class startup scene, the focus has primarily been on the consumer sector as opposed to industry applications, according to Agervi. That is something he aims to change by connecting small companies with powerful giants.

“We can give small companies industrial partners that enables them to grow. And at the same time, we can build value and industrial solutions”, says Agervi, adding that Combient wouldn't be possible without Wallenberg's family empire Investor and its network.

“I don't believe it exists anywhere else in the world. And it’s strange really, because the idea is quite brilliant”, says Agervi, an Ericsson veteran. "Maybe [we're first] because cooperation is a forte here in the Nordics."

The Wallenberg's, Sweden's most powerful industrial dynasty, recently made a handsome donation to basic research in Sweden. Last November, the Knut and Alice Wallenberg foundation donated 1,6 billion Swedish krona ($190 million) mainly for research on AI.

Combient's game-plan: To convene meetups between the CEOs and Chairmen of member companies, and arrange expert forums on AI and other tech. Conduct tests and experiments and also consultation to company-specific problems.